French dairy companies have written to farmer milk suppliers across the country asking them to reduce milk supply over the coming months due to the impact COVID-19 is having on dairy markets. CNIEL, the representative body for French dairy companies, is asking French dairy farmers to reduce their milk supply in April by anywhere between 2% and 5%.
French dairy companies have written to farmer milk suppliers across the country asking them to reduce milk supply over the coming months due to the impact COVID-19 is having on dairy markets.
CNIEL, the representative body for French dairy companies, is asking French dairy farmers to reduce their milk supply in April by anywhere between 2% and 5%.
The French dairy industry has established a €10m fund to incentivise French farmers to curb production.
The industry says it will pay 32c for every litre of milk not produced. It says it hopes to reduce April milk supplies across France by as much as 30m litres, which would ease the seasonal peak in supply.
Balance
CNIEL CEO Thierry Roquefeuil said the reduction in milk supply would help keep dairy markets in balance between supply and the major change on the demand side of the market since the COVID-19 lockdown.
The shutdown of the food service industry (restaurants, cafés, fast-food outlets, etc) has had a very negative impact on consumption of certain dairy products in France such as specialist cheeses.
Lactalis
Meanwhile, French dairy company Lactalis, one of the largest dairy processors in the world, has also written to its 1,300 farmer milk suppliers in the Brittany and Normandy regions of France asking them to voluntarily reduce milk supply over the coming months.
Just like in Ireland, dairy farming in Normandy and Brittany is mostly grass-based and the region is entering its months of peak milk supply in April and May.
Lactalis says its milk processing sites are already close to capacity, while at the same time absentee rates of employees has skyrocketed due to COVID-19.
An outbreak of the virus among staff forces employees to self-isolate from work, while it also forces employees who have been in contact with that person to also stay at home.
On top of that, an outbreak of the virus in a plant sees many employees simply choose not to go to work in order to protect their own health and the health of their family.
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